Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Automate the “Full Call” Notification Process Relating to Money Market Instruments and Reduce the Time Frame Within Which Notices Are Required To Be Submitted, 11175-11177 [2012-4279]
Download as PDF
srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices
submitting a request or petition for
hearing (even in instances in which the
participant, or its counsel or
representative, already holds an NRCissued digital ID certificate). Based upon
this information, the Secretary will
establish an electronic docket for the
hearing in this proceeding if the
Secretary has not already established an
electronic docket.
Information about applying for a
digital ID certificate is available on the
NRC’s public Web site at https://
www.nrc.gov/site-help/e-submittals/
apply-certificates.html. System
requirements for accessing the ESubmittal server are detailed in the
NRC’s ‘‘Guidance for Electronic
Submission,’’ which is available on the
NRC’s public Web site at https://
www.nrc.gov/site-help/e-submittals.
html. Participants may attempt to use
other software not listed on the Web
site, but should note that the NRC’s
E-Filing system does not support
unlisted software, and the NRC Meta
System Help Desk will not be able to
offer assistance in using unlisted
software.
If a participant is electronically
submitting a document to the NRC in
accordance with the E-Filing rule, the
participant must file the document
using the NRC’s online, Web-based
submission form. In order to serve
documents through the Electronic
Information Exchange System, users
will be required to install a Web
browser plug-in from the NRC’s Web
site. Further information on the Webbased submission form, including the
installation of the Web browser plug-in,
is available on the NRC’s public Web
site at https://www.nrc.gov/site-help/esubmittals.html.
Once a participant has obtained a
digital ID certificate and a docket has
been created, the participant can then
submit a request for hearing or petition
for leave to intervene. Submissions
should be in Portable Document Format
(PDF) in accordance with NRC guidance
available on the NRC’s public Web site
at https://www.nrc.gov/site-help/esubmittals.html. A filing is considered
complete at the time the documents are
submitted through the NRC’s E-Filing
system. To be timely, an electronic
filing must be submitted to the E-Filing
system no later than 11:59 p.m. Eastern
Time on the due date. Upon receipt of
a transmission, the E-Filing system
time-stamps the document and sends
the submitter an email notice
confirming receipt of the document. The
E-Filing system also distributes an email
notice that provides access to the
document to the NRC’s Office of the
General Counsel and any others who
VerDate Mar<15>2010
19:27 Feb 23, 2012
Jkt 226001
have advised the Office of the Secretary
that they wish to participate in the
proceeding, so that the filer need not
serve the documents on those
participants separately. Therefore,
applicants and other participants (or
their counsel or representative) must
apply for and receive a digital ID
certificate before a hearing request/
petition to intervene is filed so that they
can obtain access to the document via
the E-Filing system.
A person filing electronically using
the NRC’s adjudicatory E-Filing system
may seek assistance by contacting the
NRC Meta System Help Desk through
the ‘‘Contact Us’’ link located on the
NRC Web site at https://www.nrc.gov/
site-help/e-submittals.html, by email to
MSHD.Resource@nrc.gov, or by a tollfree call to 1–866–672–7640. The NRC
Meta System Help Desk is available
between 8 a.m. and 8 p.m., Eastern
Time, Monday through Friday,
excluding government holidays.
Participants who believe that they
have a good cause for not submitting
documents electronically must file an
exemption request, in accordance with
10 CFR 2.302(g), with their initial paper
filing requesting authorization to
continue to submit documents in paper
format. Such filings must be submitted
by: (1) First class mail addressed to the
Office of the Secretary of the
Commission, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001, Attention: Rulemaking and
Adjudications Staff; or (2) courier,
express mail, or expedited delivery
service to the Office of the Secretary,
Sixteenth Floor, One White Flint North,
11555 Rockville Pike, Rockville,
Maryland 20852, Attention: Rulemaking
and Adjudications Staff. Participants
filing a document in this manner are
responsible for serving the document on
all other participants. Filing is
considered complete by first-class mail
as of the time of deposit in the mail, or
by courier, express mail, or expedited
delivery service upon depositing the
document with the provider of the
service. A presiding officer, having
granted an exemption request from
using E-Filing, may require a participant
or party to use E-Filing if the presiding
officer subsequently determines that the
reason for granting the exemption from
use of E-Filing no longer exists.
Documents submitted in adjudicatory
proceedings will appear in the NRC’s
electronic hearing docket which is
available to the public at https://
ehd1.nrc.gov/ehd/, unless excluded
pursuant to an order of the Commission,
or the presiding officer. Participants are
requested not to include personal
privacy information, such as social
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
11175
security numbers, home addresses, or
home phone numbers in their filings,
unless an NRC regulation or other law
requires submission of such
information. With respect to
copyrighted works, except for limited
excerpts that serve the purpose of the
adjudicatory filings and would
constitute a Fair Use application,
participants are requested not to include
copyrighted materials in their
submission.
IV. Document Availability
Detailed information about the license
renewal process can be found on the
NRC’s Web site at https://www.nrc.gov/
reactors/operating/licensing/
renewal.html. Copies of the application
to renew the operating license for
Callaway are available for public
inspection at the NRC’s PDR, located at
One White Flint North, 11555 Rockville
Pike (first floor), Rockville, MD 20852–
2738, and on the NRC’s Web site at
https://www.nrc.gov/reactors/operating/
licensing/renewal/applications.html,
while the application is under review.
The NRC staff has verified that a copy
of the license renewal application is
also available to local residents near
Callaway, at the Callaway County Public
Library, 710 Court St., Fulton, MO
65251.
Dated at Rockville, Maryland, this 16th day
of February, 2012.
For the Nuclear Regulatory Commission.
Mark S. Delligatti,
Acting Deputy Director, Division of License
Renewal, Office of Nuclear Reactor
Regulation.
[FR Doc. 2012–4309 Filed 2–23–12; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66413; File No. SR–DTC–
2012–01]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Automate
the ‘‘Full Call’’ Notification Process
Relating to Money Market Instruments
and Reduce the Time Frame Within
Which Notices Are Required To Be
Submitted
February 16, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 2 thereunder
1 15
2 17
E:\FR\FM\24FEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
24FEN1
11176
Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices
notice is hereby given that on February
8, 2012, The Depository Trust Company
(‘‘DTC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III, below, which Items
have been prepared primarily by DTC.
DTC filed the proposed rule change
pursuant to Section 19(b)(3)(A) 3 of the
Act and Rule 19b–4(f)(4) 4 thereunder so
that the proposed rule change was
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change would
automate the ‘‘full call’’ notification
process relating to Money Market
Instruments (‘‘MMIs’’) and would
reduce the time frame within which
such notices are required to be
submitted to DTC.5
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. DTC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
srobinson on DSK4SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. DTC requires that an issuer or its
agent notify DTC in a timely manner in
the event of a full or partial redemption
of outstanding debt securities.
Currently, DTC requires that an MMI
Issuing/Paying Agent (‘‘IPA’’) send DTC
full call information by email to DTC’s
redemption processing area no later
than the close of business on the
business day before or if possible two
business days before the Publication
Date, which except as otherwise noted
in DTC’s Operational Arrangements
(‘‘OA’’), is no fewer than 30 calendar
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4).
5 DTC is also making an unrelated change to its
settlement processing schedule for The Options
Clearing Corporation (‘‘OCC’’) services in response
to a request from OCC.
4 17
VerDate Mar<15>2010
18:34 Feb 23, 2012
Jkt 226001
days or more than 60 calendar days
prior to the Redemption Date.
In April 2011, members of the
Securities Industry and Financial
Markets Association Money Market
Committee (‘‘SIFMA MMI Committee’’)
sent a written request to DTC regarding
the ‘‘full call’’ notification process for
MMIs.6 The SIFMA MMI Committee
requested that DTC reevaluate its
procedures regarding notification time
frames for processing certain
transactions in MMIs (‘‘Request’’).7 The
financial services industry, and the
money market sector in particular, is
responding to various significant
regulatory changes including, the Basel
III capital directives (‘‘Basel III’’). In
particular, the industry is concerned
that the anticipated implementation of a
Liquidity Coverage Ratio under Basel III
will have significant consequences on
the cost of short-term funds for major
international banks and that the
commercial paper market will need to
adapt to these changes. DTC was
advised that the ability to issue callable
commercial paper with very short notice
periods would be beneficial to banks in
managing the new Liquidity Coverage
Ratio. The industry has indicated that
affected banks may shift a significant
percentage of commercial paper
issuances into a callable format over
time.
DTC has reviewed its current
processes and has determined that it is
feasible to automate its processes as
they relate to the SIFMA MMI Request.
In so doing, DTC would reduce
operational risk in the processing of
MMI full call notices and at the same
time would support the Request. In
order to facilitate this automation, DTC
will create a function that will provide
IPAs with the ability and option to
input MMI full call information directly
into DTC’s systems through an input
screen in the Settlement Web or through
an automated message format. The
announcement information will be
available through the existing Reorg
Inquiry for Participants (‘‘RIPS’’)
function on DTC’s Participant Terminal
System (‘‘PTS’’) and as an intraday file
to which Participants will be able to
subscribe. The information will also be
included in end of day redemption
output files. As a result of this
automation, DTC will be able to reduce
the notification time frame on full call
MMIs so that effective April 26, 2012,
DTC will modify the timing of a full call
announcement so that IPAs have the
option to send notification to DTC up
until noon on the day before the
maturity date for those IPAs that use the
full call automation input mechanism.
Additionally, at the request of the
Options Clearing Corporation (‘‘OCC’’),
DTC is making unrelated updates to its
Settlement Service Guide in order to
make changes to certain OCC cutoff
times. These two cutoffs were originally
established to allow OCC as Pledgee (as
defined in the DTC rules and
procedures) sufficient time to receive
and input Participant release requests to
the OCC internal system and then to
create and send approved releases back
to DTC. When first introduced, this was
a manual process. In 1997, DTC
extended the cutoffs to the current times
to reflect automation in OCC’s process.8
OCC has now requested that DTC
extend the cutoffs further in order to
allow Participants additional time to
process their release requests since the
current process is no longer manual and
is instead a ‘‘real-time’’ messaging
between DTC and OCC. Effective upon
the date of this filing, DTC will extend
the OCC cutoffs described above to
6:15 pm.
2. The proposed rule change is
consistent with the requirements of the
Act, the rules and regulations
thereunder, and the CPSS/IOSCO
Recommendations for Securities
Settlement Systems applicable to DTC.
The proposed rule changes modify
existing DTC services in order to make
the redemption announcement process,
as it relates to MMIs, and the processing
of pledge releases through the OCC,
more efficient. As such, these are
changes to existing services, which will
not adversely affect the safeguarding of
securities and funds in DTC’s control or
custody and which will not significantly
affect the rights or obligations of the
clearing agency or persons using the
service.
6 The SIFMA MMI Committee includes MMI
dealers and IPAs.
7 DTC, in consultation with the industry, agreed
that these process changes for MMIs would only
apply to full calls. A partial call undergoes a
different process using a ‘‘lottery’’ mechanism that
requires more time for the holders to elect their
option and for operational processing. Given the
additional time constraints, it was agreed that DTC
would shorten the window only for full calls.
DTC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
8 See DTC Important Notice B#2287 dated
December 2, 1997 in which DTC made changes to
OCC’s cutoffs.
E:\FR\FM\24FEN1.SGM
24FEN1
Federal Register / Vol. 77, No. 37 / Friday, February 24, 2012 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change have not yet been
solicited or received. DTC will notify
the Commission of any written
comments received by DTC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change was filed
pursuant to Section 19(b)(3)(A) of the
Act and paragraph (f)(4) of Rule 19b–4
and therefore, became effective on
filing. At any time within sixty days of
the filing of such rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–DTC–2012–01 on the
subject line.
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10 a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at DTC’s principal office and on
DTC’s Web site at www.dtc.org. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
All submissions should refer to File
Number SR–DTC–2012–01 and should
be submitted on or before March 16,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–4279 Filed 2–23–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66420; File No. SR–Phlx2011–179]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Order
Granting Approval of a Proposed Rule
Change, as Modified by Amendment
No. 1 Thereto, Relating to the Listing
and Trading of MSCI EM Index Options
srobinson on DSK4SPTVN1PROD with NOTICES
Paper comments
February 17, 2012.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–DTC–2012–01. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
I. Introduction
VerDate Mar<15>2010
18:34 Feb 23, 2012
Jkt 226001
On December 21, 2011, NASDAQ
OMX PHLX LLC (the ‘‘Exchange’’ or
‘‘Phlx’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (the ‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend certain of its rules to provide for
the listing and trading of options on the
MSCI EM Index. The proposed rule
change was published for comment in
the Federal Register on January 6,
2012.3 On January 11, 2012, the
Exchange filed Amendment No. 1 to the
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 66077
(January 3, 2012), 77 FR 829 (‘‘Notice’’).
1 15
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
11177
proposed rule change.4 The Commission
received no comment letters on the
proposed rule change. This order
approves the proposed rule change, as
modified by Amendment No. 1 thereto.
II. Description
The proposed rule change would
amend Phlx Rules 1079 (FLEX Index,
Equity and Currency Options), 1009A
(Designation of the Index) and 1101A
(Terms of Option Contracts) to list and
trade P.M. cash-settled, European-style
options, including FLEX 5 options and
LEAPS,6 on the MSCI EM Index, which
is described below. The proposal would
also create new Phlx Rule 1108A,
entitled ‘‘MSCI EM Index,’’ which
would provide additional detailed
information pertaining to the index as
required by the licensor including, but
not limited to, liability and other
representations on the part of MSCI Inc.
(‘‘MSCI’’), which maintains the index.
As described by the Exchange, the
MSCI EM Index is a free float-adjusted
market capitalization index consisting
of large and midcap component
securities from countries classified by
MSCI as ‘‘emerging markets,’’ and is
designed to measure equity market
performance of emerging markets. The
index consists of component securities
from the following 21 emerging market
countries: Brazil, Chile, China,
Colombia, Czech Republic, Egypt,
Hungary, India, Indonesia, Korea,
Malaysia, Mexico, Morocco, Peru,
Philippines, Poland, Russia, South
Africa, Taiwan, Thailand, and Turkey.
As further described by the Exchange,
the MSCI EM Index is calculated in U.S.
Dollars on a real time basis from the
open of the first market on which the
components are traded to the close of
the last market on which the
components are traded. The level of the
index reflects the free float-adjusted
market value of the component stocks
relative to a particular base date, and the
methodology used to calculate the value
of the index is similar to the
methodology used to calculate the value
of other well-known market4 Amendment No. 1 made a technical correction
to the Exhibit 3. Amendment No. 1 is not subject
to notice and comment because it is technical in
nature and does not materially alter the substance
of the proposed rule change or raise any novel
regulatory issues.
5 FLEX options are flexible exchange-traded
index, equity, or currency option contracts that
provide investors the ability to customize basic
option features including size, expiration date,
exercise style, and certain exercise prices. FLEX
index options may have expiration dates within five
years. See Exchange Rules 1079 and 1101A.
6 LEAPS or Long Term Equity Anticipation
Securities are long term options that generally
expire from twelve to thirty-nine months from the
time they are listed.
E:\FR\FM\24FEN1.SGM
24FEN1
Agencies
[Federal Register Volume 77, Number 37 (Friday, February 24, 2012)]
[Notices]
[Pages 11175-11177]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4279]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66413; File No. SR-DTC-2012-01]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Automate the ``Full Call'' Notification Process Relating to Money
Market Instruments and Reduce the Time Frame Within Which Notices Are
Required To Be Submitted
February 16, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 \2\ thereunder
[[Page 11176]]
notice is hereby given that on February 8, 2012, The Depository Trust
Company (``DTC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared primarily by DTC. DTC
filed the proposed rule change pursuant to Section 19(b)(3)(A) \3\ of
the Act and Rule 19b-4(f)(4) \4\ thereunder so that the proposed rule
change was effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would automate the ``full call''
notification process relating to Money Market Instruments (``MMIs'')
and would reduce the time frame within which such notices are required
to be submitted to DTC.\5\
---------------------------------------------------------------------------
\5\ DTC is also making an unrelated change to its settlement
processing schedule for The Options Clearing Corporation (``OCC'')
services in response to a request from OCC.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, DTC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. DTC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. DTC requires that an issuer or its agent notify DTC in a timely
manner in the event of a full or partial redemption of outstanding debt
securities. Currently, DTC requires that an MMI Issuing/Paying Agent
(``IPA'') send DTC full call information by email to DTC's redemption
processing area no later than the close of business on the business day
before or if possible two business days before the Publication Date,
which except as otherwise noted in DTC's Operational Arrangements
(``OA''), is no fewer than 30 calendar days or more than 60 calendar
days prior to the Redemption Date.
In April 2011, members of the Securities Industry and Financial
Markets Association Money Market Committee (``SIFMA MMI Committee'')
sent a written request to DTC regarding the ``full call'' notification
process for MMIs.\6\ The SIFMA MMI Committee requested that DTC
reevaluate its procedures regarding notification time frames for
processing certain transactions in MMIs (``Request'').\7\ The financial
services industry, and the money market sector in particular, is
responding to various significant regulatory changes including, the
Basel III capital directives (``Basel III''). In particular, the
industry is concerned that the anticipated implementation of a
Liquidity Coverage Ratio under Basel III will have significant
consequences on the cost of short-term funds for major international
banks and that the commercial paper market will need to adapt to these
changes. DTC was advised that the ability to issue callable commercial
paper with very short notice periods would be beneficial to banks in
managing the new Liquidity Coverage Ratio. The industry has indicated
that affected banks may shift a significant percentage of commercial
paper issuances into a callable format over time.
---------------------------------------------------------------------------
\6\ The SIFMA MMI Committee includes MMI dealers and IPAs.
\7\ DTC, in consultation with the industry, agreed that these
process changes for MMIs would only apply to full calls. A partial
call undergoes a different process using a ``lottery'' mechanism
that requires more time for the holders to elect their option and
for operational processing. Given the additional time constraints,
it was agreed that DTC would shorten the window only for full calls.
---------------------------------------------------------------------------
DTC has reviewed its current processes and has determined that it
is feasible to automate its processes as they relate to the SIFMA MMI
Request. In so doing, DTC would reduce operational risk in the
processing of MMI full call notices and at the same time would support
the Request. In order to facilitate this automation, DTC will create a
function that will provide IPAs with the ability and option to input
MMI full call information directly into DTC's systems through an input
screen in the Settlement Web or through an automated message format.
The announcement information will be available through the existing
Reorg Inquiry for Participants (``RIPS'') function on DTC's Participant
Terminal System (``PTS'') and as an intraday file to which Participants
will be able to subscribe. The information will also be included in end
of day redemption output files. As a result of this automation, DTC
will be able to reduce the notification time frame on full call MMIs so
that effective April 26, 2012, DTC will modify the timing of a full
call announcement so that IPAs have the option to send notification to
DTC up until noon on the day before the maturity date for those IPAs
that use the full call automation input mechanism.
Additionally, at the request of the Options Clearing Corporation
(``OCC''), DTC is making unrelated updates to its Settlement Service
Guide in order to make changes to certain OCC cutoff times. These two
cutoffs were originally established to allow OCC as Pledgee (as defined
in the DTC rules and procedures) sufficient time to receive and input
Participant release requests to the OCC internal system and then to
create and send approved releases back to DTC. When first introduced,
this was a manual process. In 1997, DTC extended the cutoffs to the
current times to reflect automation in OCC's process.\8\ OCC has now
requested that DTC extend the cutoffs further in order to allow
Participants additional time to process their release requests since
the current process is no longer manual and is instead a ``real-time''
messaging between DTC and OCC. Effective upon the date of this filing,
DTC will extend the OCC cutoffs described above to 6:15 pm.
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\8\ See DTC Important Notice B2287 dated December 2,
1997 in which DTC made changes to OCC's cutoffs.
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2. The proposed rule change is consistent with the requirements of
the Act, the rules and regulations thereunder, and the CPSS/IOSCO
Recommendations for Securities Settlement Systems applicable to DTC.
The proposed rule changes modify existing DTC services in order to make
the redemption announcement process, as it relates to MMIs, and the
processing of pledge releases through the OCC, more efficient. As such,
these are changes to existing services, which will not adversely affect
the safeguarding of securities and funds in DTC's control or custody
and which will not significantly affect the rights or obligations of
the clearing agency or persons using the service.
B. Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change will have any
impact or impose any burden on competition.
[[Page 11177]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments relating to the proposed rule change have not yet
been solicited or received. DTC will notify the Commission of any
written comments received by DTC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change was filed pursuant to Section 19(b)(3)(A)
of the Act and paragraph (f)(4) of Rule 19b-4 and therefore, became
effective on filing. At any time within sixty days of the filing of
such rule change, the Commission summarily may temporarily suspend such
rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-DTC-2012-01 on the subject line.
Paper comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-DTC-2012-01. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at DTC's principal office and on DTC's Web site
at www.dtc.org. All comments received will be posted without change;
the Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.
All submissions should refer to File Number SR-DTC-2012-01 and
should be submitted on or before March 16, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-4279 Filed 2-23-12; 8:45 am]
BILLING CODE 8011-01-P